Chevron Awarded New Acreage Offshore Australia

SAN RAMON, Calif., and PERTH, Australia, Jan. 31, 2006 -- Chevron Corporation (NYSE:CVX) subsidiary Chevron Australia Pty Ltd has been awarded the exploration rights to offshore block W05-16 in the Carnarvon Basin in Australia. The block, in the highly prospective Greater Gorgon Area, is located off the northwest coast of Australia.

Chevron will be the operator of the block and will hold a 50 percent interest. Shell Development Australia and ExxonMobil each will hold a 25 percent interest in the block. The W05-16 permit area covers an area of 1,020 square miles (2,650 square kilometers) and lies approximately 60 miles (100 km) northwest of Barrow Island. The Carnarvon Basin, Australia's premier petroleum basin, includes both the North West Shelf and Greater Gorgon Area resources.

John Watson, Chevron International Exploration and Production Company president, said, "This award demonstrates our worldwide focus on pursuing high-impact areas for exploration and signals Chevron's further commitment to pursue attractive growth opportunities as part of our integrated global gas business."

Jay Johnson, managing director of Chevron Australia Pty Ltd, added, "This acreage, which is adjacent to the gas fields of the Chevron-led Gorgon Project, significantly expands our interests in offshore Western Australia and reinforces the prominence of Australia in Chevron's overall exploration and development plans. The work to support this bid reflects the advancement in our technical understanding of the complex geology of this basin."

The three-year work program for the permit area includes geotechnical studies, approximately 1,500 miles (2,350 km) 2-D seismic reprocessing, 695 square miles (1,800 sq. km) 3-D seismic survey acquisition and the drilling of two exploration wells. Seismic work will begin this year. There is potential for a further three-year work program.

Headquartered in Perth, Western Australia, Chevron Australia Pty Ltd is leading the joint -venture development of the Greater Gorgon Area licenses, is a joint-venture participant in the North West Shelf Venture, and is operator and joint-venture participant in the Barrow Island and Thevenard Island oil fields. All are located off the northwest coast of Australia.

Chevron Corporation is one of the world's leading energy companies. With more than 53,000 employees, Chevron subsidiaries conduct business in over 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing, and distributing fuels and other energy products. Chevron is based in San Ramon, Calif. More information on Chevron is available at www.chevron.com.

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